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OECD Convention on Mutual Administrative Assistance in Tax Matters

Providing the entry into force as of 1 January 2018 with retroactive effect from 1 January 2017 of the OECD Convention on Mutual Administrative Assistance in Tax Matters (hereinafter “Convention”) signed on 3 November 2011 and ratified by the Turkish Parliament on 20 May 2017.

Via this Convention, States parties will undertake obligations of information, including automatic and spontaneous information (and this is the first major change in relation to the existing bilateral conventions). Moreover, the requested State shall take the measures of conservancy (Article 12) upon the request of the applicant State. The requested State shall recover the tax claims of the first- mentioned State as if it were its own tax claims (Article 11 (1)), provided that the claim can no longer be contested (Article 13 (1) (a)) and that the 15-year period from the original enforcement order has not expired. However, the Republic of Turkey has put reserves on social security contributions, taxes on capital and local taxes.

As per the Reservations and Declarations stated by Turkey, income tax, corporation tax and value added tax are the taxes to which the Convention would apply and Turkey reserves the right not to provide any form of assistance in relation to the other taxes of the other parties.

Our Law Firm remains at your disposal for any further queries you may request with respect to these issues.

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